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Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $25,000. The estimated useful life was five years and
Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $25,000. The estimated useful life was five years and the residual value was $3,000. Assume that the estimated productive life of the machine is 10,000 units. Expected annual production for year 1, 2,000 units; year 2, 3,000 units; year 3, 2,000 units; year 4, 2,000 units; and year 5, 1,000 units. |
Required: | |
1. | Complete a depreciation schedule for each of the alternative methods. (Do not round intermediate calculations.) |
a. | Straight-line. |
Income Statement | Balance Sheet | |||
Year | Depreciation Expense | Cost | Accumulated Depreciation | Book Value |
At acquisition | $25,000 | |||
1 | $4,400 | $25,000 | ? | ? |
2 | 4,400 | 25,000 | ? | ? |
3 | 4,400 | 25,000 | ? | ? |
4 | 4,400 | 25,000 | ? | ? |
5 | 4,400 | 25,000 | ? | ? |
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